Title 34 Chapter 51 Part 2 Section 202

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Index	Utah Code
Title 34	Labor in General
Chapter 51	Post-employment Restrictions Act
Part 2	Scope of Post-employment Restrictions
Section 202	Exceptions for non-compete agreements. *(Effective 5/6/2026)*

Effective 5/6/2026
34-51-202. Exceptions for non-compete agreements.

(1)

This chapter does not prohibit:

(a)	a reasonable severance agreement mutually and freely agreed upon in good faith at or after the time of termination that includes a non-compete agreement or a healthcare non-compete agreement; or

(b)	a non-compete agreement or a healthcare non-compete agreement related to or arising out of the sale of a business, if the individual subject to the non-compete agreement or healthcare non-compete agreement receives value related to the sale of the business.

(2)	Notwithstanding Subsection (1)(a), a severance agreement remains subject to any requirements imposed under common law.

Amended by Chapter 341, 2026 General Session

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